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Impact of COVID-19 on Various Businesses

COVID-2019: Impact on Various Businesses
May 6, 2020

Impact of COVID-19 on Various Businesses

May 06, 2020
Chiranjeevi Maddala


Last year, a new breed of the deadly virus was detected in Wuhan, China. This led to an infectious disease caused by severe acute respiratory syndrome coronavirus 2, commonly known as COVID-19. This virus has the capability to spread from one person to another just from close contact. As we shifted to 2020, COVID-19 quickly spread globally, eventually leading us to the pandemic we are living in right now.
Who would have thought 2020 was going to begin this way? It certainly feels like a never-ending slide leading all of us to nothing but losses. Amid the pandemic, eCommerce companies seem to be most impacted compared to any other area of the market. Most of these businesses are unable to meet the consumer requirements for essential products & groceries, either due to a shortage of losses.
Most of the eCommerce companies that deal in the Delivery of non-essential products have had the most impact. This is due to the fact that only essential items are being allowed to be sold at the moment. But not everything has been bad; a lot of businesses have started using other digital resources to help consumers amid the pandemic. There’s a massive chunk of people who were introduced to digital web apps since this pandemic began.

How the Pandemic Changed User Behavior?

Though this pandemic has brought a lot of negative impacts with itself, some things have changed for good. A lot of people have started utilizing digital resources as compared to last year. Social media platforms have begun seeing huge spikes of user activities on their platforms. Working professionals have started learning new skills since most of the offices are either closed or have opted to work from home.
People can now buy essential products online instead of physically going to the grocery shops for shopping. A lot of eCommerce companies have started offering essential items online for people to order from the comfort of their homes. This allows people to not only get the groceries at their doorstep but keep themselves and others safe from the virus.
The general spending rate has also reduced a lot compared to earlier since most of the shops are closed due to lockdown all over the world. This offers an excellent opportunity for people who were struggling to save money. A lot of governments have allowed people to postpone their loan and rent payments amid this pandemic.
As a precautionary measure and the lockdowns, people have started staying indoors; you won’t find any transportation on the roads resulting in reduced pollution all over the planet. People have started staying away from others due to fear of contracting the virus since it spreads through close contact.
But there are cases where you can see panic among the population due to the lockdown. It is easy to figure out how people will react if the lockdown is extended further than it already has. But staying indoors, away from others, is essential for our survival, something that people will eventually come to understand.
Since the lockdown, perspective over life and work importance has changed for a lot of people. One can see how these changes have brought a positive impact on the priorities of people all over the world. No longer people feel the need to spend on items that offer little value to them. The importance of social interaction can be felt as well as everyone longs to go outside and enjoy with their friends and family as they used to.

What are the Effects of COVID-19 on eCommerce Operations?

Since the pandemic started, eCommerce has seen the most impacts on its operations. Most of the shopping complexes and markets are closed due to lockdown. This has made people turn to online services, due to which a lot of businesses who can’t operate online have seen huge losses.
There are businesses that have seen spikes in user interactions on their online platforms such as Facebook, Instagram, WhatsApp, and TikTok. But for companies that dealt mainly with customer products offline have been having a hard time making any revenues. Since the lockdown, all the deliveries have been shut down; only essential items are being delivered to people. Most of the warehouses of e-commerce companies are either piled up with products that aren’t being sold or are out of stock for essential items due to a halt in production.

COVID-19 outbreak has led companies to turn their head towards digital eCommerce. Since most people are being expected to practice social distancing to keep themselves and others safe from the virus, people have started relying on online stores for the necessities. We can see a rise in home deliveries and the pandemic, which will likely continue once the lockdown is over.
Though at the moment only essential items are being ordered, it can be expected that people will start to rely on online stores for other purchases as well.

Effect of COVID-19 on Education

Since the outbreak, most of the schools and colleges have been closed. Due to this, most of the people and businesses have turned to online resources for learning. Several schools and colleges have started online classes for the student, keeping the importance of educating them as a priority.
Apart from that, the working class has started learning through various online platforms that are offering different courses online. One such example can be seen on LinkedIn, who began offering a free digital course for people around the world on its platform. This offers a great opportunity for people to add more skills to their resume. And offers them an opportunity to find expertise in departments they might be unaware of.

Effect on Travel & Tourism

It goes without saying that this is once the category where the impact of COVID-19 might be the worst. Since more and more cities have started going under lockdown all over the world, travel and tourism businesses have been shut down. During the time when people are practicing social distancing, it makes no sense for them to book any vacation anytime soon. And there are no options for them to move to digital eCommerce as well. But one thing is clear; it might be a minor setback until the world gets rid of COVID-19, travel business will boom once people start going out. But for the moment, the tourism business might have to deal with losses for some time.

Effect on Food Industry

For restaurants, COVID-19 has brought significant impact. With no customers to serve at the moment, the sources of revenue deplete for them. But even then, some businesses have turned to digital platforms at the moment to promote their products for the time to come. On platforms like YouTube and Instagram, food channels and accounts can still grab customers. These businesses will have to consider this as an opportunity to attract customers for a possible future profit.

Effect on the Hotel Industry

Just like the travel industry, hotel businesses have been impacted a lot since the pandemic. With no people to serve in their hotel, their revenue has seen a steep decline over time. If the lockdown continues to extend, a lot of businesses might have to close down eventually.

Impact on Business Revenues amid COVID-19

Since the lockdown, customers have limited shopping online for essential only. Most of the eCommerce companies are trying to adapt to these new changes to meet customer requirements.
But some of the eCommerce businesses have seen an uprise in their sales during this pandemic. This is especially applicable for eCommerce businesses that deal in household groceries. More and more people are buying health and wellness products, which is beneficial for eCommerce businesses dealing in healthcare products. These products generally include buying masks or hand sanitizers.

Expected Innovations 

Virtual & Augmented Reality

It is expected that we are going to see some innovation from eCommerce businesses dealing in Virtual reality products. Since most of the people are keeping themselves inside their homes, getting an opportunity to see the places people love is probably number one on their to-do list. From research conducted by an Italian research paper, it is revealed that getting an immersive VR experience can help calm people down amid the COVID-19 pandemic.
This opens up a lot of possibilities for industries that have been having a hard time surviving during this outbreak, such as the travel and tourism industries. It can be expected from these industries to come up with VR & AR products that will help people feel connected to the places they loved. A virtual reality experience not only offers a safe alternative for people to enjoy, but it also provides an opportunity to get a deeper understanding of their situations.

How You Should Get Ready

Though it might feel like a tough task to overcome losses amid this pandemic, there are still some strategies you can implement to stay on top. Begin with revamping your marketing strategy. Assess your situation, check where you have been facing issues, and what technologies you can implement to stay ahead of the curve. 
Utilize the social platform for marketing if your services or products, keep in mind that eventually, this pandemic will end. You have to be prepared for that. Learn some new techniques that can result in better traffic towards your business. Try to find methods that will make sure you get a high rate of conversions.
If you are just stepping into the eCommerce market, begin with implementing an online store for your business. Focus on increasing your social presence before anything else. Your primary focus should be on getting known amidst the customer base. Build accounts and business pages on social platforms and attract potential customers from there.

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